The goodwill charter

Unfortunately, in today's fluctuating property market, it is more and more common for purchasers to be gazumped and vendor's gazundered. Kingsly Estate Agents have the solution.

So what is gazumping?

Gazumping happens when a seller who has already accepted one buyer's offer then goes on to accept a higher offer, pushing the first buyer out of the picture. It can come about at any point before contracts are exchanged, as until the papers are signed there is no legal obligation to either buy or sell. Gazumping is a horror that estate agents are powerless to stop. Under the Estate Agency Act (1979) in England and Wales, estate agents are obliged to pass on all offers received to the seller and it is up to the seller whether or not they consider them. The seller can legally then decide to accept the new offer, regardless of how close the initial buyer is to having the contracts exchanged.

What about Gazundering?

Gazundering is a phenomenon more common to a buyers market. This is where the buyer waits until everybody is poised to exchange contracts and then lowers his or her offer on the property. If the seller refuses, the whole chain may collapse.

Questions + Answers

Q If I pull out of the sale what happens to my bond?AYou lose it. We do not want you entering into an agreement and committing to it unless you are 100% sure.

Q How much money do I have to lay out?AThe amount is agreed between the vendor and the purchaser, we suggest £500 - £1000 each.

Q For how long is the agreement binding?AThis should be discussed by both sides but we would suggest 14 – 21 days.

Q If I pull out of the sale and therefore lose my bond, do you, the agent, keep the money?ANo, we pass it on to the purchaser/vendor to cover their abortive costs.

Q Is signing the charter legally binding?AWe believe so. As with any legal document, you should take advice before signing it.

Q I am happy to sign the charter but would like to make amendments/additions to it. Can I do that?AYes, it can be amended to both parties specific needs as long as you both agree.

Q At the end of the time period do I get my money back if I haven't pulled out of the sale?AYes.

Q What happens to the other parties share of the bond?AIf they have kept to the agreement, their money is returned to them. If they have broken the agreement, you will receive their bond.